VOLKSWAGEN FACTORS AFFECTING STRUCTURAL CHOICE: STRATEGY, SIZE, TECHNOLOGY, ENVIRONMENTAL UNCERTAINTY TABLE ON CONTENTS • STRUCTURE (slide 3) • STRATEGY (slide 4) • SIZE ( slide 5) • TECHNOLOGY (slide 6) • MENEGERIAL RECOMMENDATIONS (slides 7-9) • REFERENCES (slide 10) STRUCTURE • top-down organizational structure • seniors have the final words • this is one factor which conducted to the ‘Dieselgate’ in 2015 STRATEGY • one of the strategies used is the exceptional quality of service which led to the reliable cars before and after the sale • the price approaches is also a strategy as they make cars for all social classes SIZE • large organization • have more than 672.800 employees • over 20 subsidiaries all over the world • led to a lack of control TECHNOLOGY • vw.OS operating system for their I.D models (electric cars) • CARIAD software: “to make the automotive experience safer, more sustainable and more comfortable for people” MANAGERIAL RECOMMENDATIONS • the company’s structure which had to be blamed first in the emissions scandal • the CEO, Martin Winterkorn and the board chairman were responsible for their choices related to the emissions problem • the top-down structure has to be changed to matrix structure • the unity-of-command principle could be changed to dual chain of command • a matrix structure will speed up decision-making procedures, as in involves giving power to more people, and guarantee that development actually happens • engaged personnel and constructive behaviours • this structure would allow to Volkswagen a controversy-free future • as more people command will result in trust through the company REFERENCES 1. “My tip: focus on curiosity”, 2019-08-23; (https://www.volkswagenag.com/en/news/stories/2019/08/my-tip--focus-oncuriosity.html#) 2. “The bug at Volkswagen: Lessons in co-determination, ownership, and board structure”, Elson, C. M., Ferrere, C. K., & Goossen, N. J. (2015), Journal Applied Corporate Finance, 27(4), 36-43. Web. 3. “The Volkswagen brand at a glance”, Volkswagen Newsroom; (https://www.volkswagen-newsroom.com/en/company-3688) 4. “The future on hand”, ANNUAL REPORT 2020; (https://annualreport2020.volkswagenag.com/group-managementreport/structure-and-business-activities.html)
